My grandfather recently passed away. He is a non-resident and not a British citizen and owned a UK property in Holland Park. The title of the property is solely in his name, and he is survived by his wife, children and grandchildren. All are non-residents and non British Citizens (except for myself, I am a resident and a non-British citizen).
The property hasn't been valued yet, but the same type of property in the area has been on the market for around GBP 1.2million. I know that the threshold for inheritance tax is around GBP 300K, and so the tax on this property would amount to the region of GBP360K (40% of 900K)!! That is scarily high.
I'm not sure what it states in the will (we're checking at the moment), but if there is no will I assume the property will go to my grandmother (his wife).
Q1: Will my grandmother have to pay inheritance tax on this?
Q2: How do we get around this in the future? I read something about vesting the property offshore (but I don't know how that works)
Q3: If my grandmother had to pay the inheritance tax and did not have the money, then she would have to sell the house to cover the tax cost. Are there any solutions / exemptions to this as she would like to keep the house?
Thanks for your time.